The FASB Requires Which of the Following to Be Used

question 150

Multiple Choice

The FASB requires which of the following to be used in preparation of external financial statements?

• A)variable costing
• B)standard costing
• C)activity-based costing
• D)absorption costing

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Definitions:

Unemployment Tax

Taxes imposed on employers by government agencies to fund unemployment insurance and compensation programs for workers who have lost their jobs.

Social Security Tax

Taxes collected by governments from employees and employers to fund the social security program, supporting retirees, disabled persons, and survivors.

Note Payable

A financial obligation or loan evidenced by a promissory note, specifying terms such as the repayment schedule, interest, and maturity date.

Accounts Payable

Liabilities or amounts owed by a company to its creditors for goods and services received that have not yet been paid for.